The euro has changed massively in value in some countries over the past year, and this presents both opportunities and challenges for travellers and business people.
Argentina in particular is showing a remarkable development: there, the euro has increased enormously in value since 2023, which has noticeably increased the purchasing power of tourists. But while the euro is gaining strength in some regions, it is losing ground in others. A study by the technology company Wise offers insights into the dynamics of the currency markets and gives tips on how travelers can make the most of their financial opportunities.
Argentina: A Paradise for Euro Tourists
The situation in Argentina is currently particularly favorable for European travelers. Within a year, the euro has increased in value by around 65 percent against the Argentine peso. While in 2023 one euro was worth 372 pesos, today it is already worth around 1.073 pesos. This dramatic devaluation of the peso makes Argentina an extremely attractive travel destination from the perspective of the eurozone. The high inflation in Argentina, which according to the Argentine Central Bank was over 2023 percent in 100, is a major reason for the weakness of the peso. The country also suffers from economic instability, which is exacerbated by the high level of national debt and recurring financial crises. For tourists, however, this means a significant increase in their purchasing power. A vacation in Argentina - with its breathtaking landscapes such as the Iguazú Falls or the picturesque city of Buenos Aires - becomes comparatively affordable.
But the strong exchange rate alone should not be the only criterion for travel decisions. As Thomas Adamski of Wise points out, the local price level is another decisive factor. In Argentina, the economic difficulties have also led to the prices of everyday goods and services rising. Nevertheless, the relationship between exchange rate and price level remains attractive for European travelers, especially since the euro is stronger than ever.
Egypt and Türkiye: Growing Euro purchasing power in popular holiday destinations
The euro has also gained value against local currencies in other popular destinations. In Egypt, a tourist hotspot on the Red Sea and known for cultural sites such as the Pyramids of Giza, the value of the euro rose by around 39 percent. Travelers can now get around 54 Egyptian pounds for one euro, compared to just 33 pounds a year ago. This opens up the opportunity for tourists to get more for their money, whether it is when booking hotels, eating out or taking guided tours of the Egyptian temple complexes.
In Turkey, another popular destination for Europeans, the euro has also appreciated significantly in value - around 23 percent compared to last year. Turkey has seen a sharp devaluation of its currency in recent years due to high inflation and economic problems. But as in Argentina, this is leading to an increase in the purchasing power of euro tourists visiting historic cities such as Istanbul or the coasts of the Aegean.
Losses in Poland and Kenya: The euro weakens
On the other hand, however, there are also countries where the euro has lost value over the past year. In Poland, one of the most popular travel destinations in Eastern Europe, the euro fell by around eight percent. While the euro remains stable in many countries, the Polish zloty has gained ground against the European currency. This is a direct result of the robust Polish economy, which remained relatively stable even during global inflation and the energy crisis. For tourists, however, this means that Poland has become more expensive. Cities such as Krakow or Warsaw, which were known for their good value for money, are now less affordable for euro travelers than they were a year ago.
A similar picture emerges in Kenya, where the euro has also lost about eight percent of its value. A year ago, one euro was worth about 155 Kenyan shillings, today it is only 134. Kenya remains an attractive destination for safaris and beach holidays, but the fall in the value of the euro means that European holidaymakers have to dig deeper into their pockets.
Global exchange rates: A decisive factor for travel costs
Wise's study clearly shows how exchange rate fluctuations can have a direct impact on holiday budgets. It's worth it for travellers to keep an eye on developments on the global currency markets. This is not just about how much money you have available when you're abroad, but also about how best to exchange it. Banks and exchange offices, especially in tourist locations and airports, often offer unfavorable exchange rates and charge non-transparent fees. Wise spokesman Thomas Adamski recommends using digital multi-currency accounts that allow you to exchange currencies at the real mid-market exchange rate - with no hidden surcharges.
Another important aspect is the local price levels. Even if the euro has gained in value in a country, rising prices due to high inflation rates can turn the game around again. The analysis of exchange rates should therefore always be viewed in the context of the general economic development and price levels of the respective country.
Argentina as winner, Poland as loser for Euro travelers
In summary, the euro has increased massively in value in countries such as Argentina, Egypt and Turkey over the last twelve months, making these destinations particularly attractive for European tourists. However, there are also countries where the euro has lost a lot of purchasing power, such as Poland and Kenya. If you want to travel smart, you should consider not only the exchange rate but also the local price level and watch out for hidden fees when exchanging currencies.
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